The December Euro has managed a fresh upside breakout on the charts overnight and in turn hasreached the highest level since October 31st. Some of the gains in the Euro might come from the comments fromthe ECB’s Coeure who suggested that the ECB doesn’t see a noted deflation threat and the ECB also doesn’tthink the Euro zone needs to implement aggressive asset purchase easing programs to address conditions in theEU. Therefore the threat of aggressive easing is reduced that probably justifies the fresh upside breakout on theEuro charts. Initial support in the December Euro moves up to 135.64 and there might not be much in the way ofresistance seen until the 136.53 level.
Technical Outlook
EUR (DEC): Studies are showing positive momentum but are now in overbought territory, so somecaution is warranted. The market’s short-term trend is positive on the close above the 9-day moving average. It isa mildly bullish indicator that the market closed over the pivot swing number. The near-term upside objective is at136.3925. The next area of resistance is around 136.0650 and 136.3925, while 1st support hits today at 135.4950and below there at 135.2525.